Wills and Probate

Having a Valid Will

Having a valid Will in place is an essential part of planning for the future and anyone over 18 years of age can and should have a Will.

It does not matter if you have a small estate, it is vital that what you have worked hard to get passes to the people you wish it to go to.

If your estate is larger, people do not realise how a professionally drafted Will can be Tax-efficient and help to reduce your Inheritance Tax liabilities.

People often believe that they do not need a Will until they are older, this is not the case as unfortunately, none of us know what lies ahead therefore, it is better to be prepared.

A common myth is that you do not need a Will if you are married, it is often believed that everything they own will pass to their spouse or Civil Partner, this is not always the case.

What to Consider When Making Your Will

There is much to consider prior to making your Will, such as:

1. Who will you appoint as your Executors – these are the people responsible for carrying out your wishes.
2. Trustees will be needed to look after any Trusts arising from your Will or to ensure money left for younger children is looked after until they are old enough to receive it.
3. If you have children under 18 years of age, who will look after them if you are not there? The people you appoint into this vital role are called Guardians and without giving this direction in your Will, your children could be taken into care.
4. Do you have specific directions regarding your funeral?
5. Who will look after your pets if you die?
6. Are there any gifts you would like to give, these can be gifts of possessions, vehicles, jewellery, property, or money gifts.
7. Who will receive your estate after debts, taxes, funeral expenses, and gifts have been paid?

Dying Without a Will

If you die without a Will, this is called dying Intestate. The Intestacy Laws are very defined as to who gets what and not having a Will could leave your loved ones unprovided for and experiencing hardship.

Under the Intestacy Laws, if the deceased person was married or in a civil partnership with no children, the spouse or civil partner will inherit everything. If the deceased person was married or in a civil partnership and had a child/children, the spouse or civil partner will inherit anything held jointly and personal possessions, the first £322,000 of the estate, and half of anything remaining. The child/children will inherit the other half of anything remaining (split equally if there are multiple children).

Reviewing Your Will

We advise reviewing your Will every 5 years to ensure that it still meets your requirements.

If, upon reviewing your existing Will, there are just one or two minor changes, we could prepare a Codicil outlining the changes that you wish to make. A Codicil is a legal document which allows you to make changes to your existing Will without needing to rewrite your Will. Any Codicil should always be kept with your Will, but not stapled to it.

Call us now on 01626 333380 to make your Will

Inheritance Tax

Inheritance Tax is the tax paid on your estate when you die. It is calculated at 40% of the estate value which is over your tax-free allowances.

Currently, all adults have an Inheritance Tax allowance when they die of £325,000, this means that a married or Civil Partnership couple have a combined allowance of £650,000. However, if you have given gifts over and above the annual allowances in the seven years prior to your death, this can be deducted from your £325,000 allowance.

On top of the £325,000 allowance, anyone who owns their own home and intends to leave this to their children/stepchildren/grandchildren or step grandchildren, are entitled to an additional allowance of up to £175,000 per person. So, potentially a couple could have £1 million between them before they pay any Inheritance Tax. This additional allowance is called the Residence Nil Rate Band Allowance.

Ways to Reduce Your Estate Without Penalty

1. Every new Tax Year each person may give their annual allowance of £3,000, you can give the whole amount to one person or in smaller amounts to more than one person. For example, if you have three children, you may give them each £1,000, keep a note on your bank statement of what the gift was.
2. You may give as many gifts of £250 as you wish but not to the same person, so if you had six grandchildren you could give each of them the gift of £250.
3. If your child was getting married, you can give a gift of £5,000 and if you are a couple, you can each give £5,000.
4. If your grandchild was getting married, you can give a gift of £2,500 and if you are a couple, you can each give £2,500.
5. For anyone else getting married, you can give a £1,000 gift.
6. If you have surplus income, additional money gifts may be given away on a regular basis out of the surplus income.
7. Gifts to registered Charities are exempt from tax.

There is the possibility of Business Property Relief for Business owners and Agricultural Property Relief for Agricultural businesses, but the rules are changing, so check this with us for the up-to-date information.

Ultimately, any amount can be given away providing you live for seven years for it to be out of your estate. We would urge you to be cautious in doing this in case you need care in the future because giving money away could be viewed as deliberate deprivation of your assets.

Call us now on 01626 333380 to learn more.

Lasting Power of Attorney (LPA)

A Lasting Power of Attorney is a way of giving someone you trust the legal authority to act for you or, make decisions for you should you become unable or unwilling to make them for yourself in the future. When you make a Lasting Power of Attorney you are referred to as the Donor. We will explain all aspects clearly and help you to make the choices which are right for you.

One Lasting Power of Attorney: £150 plus VAT
Two Lasting Powers of Attorney: £250 plus VAT

Types of Lasting Powers of Attorney

Generally, there are two different Powers:

1. Property & Financial Affairs LPA – this allows the people you trust and have chosen to be your Attorneys the authority to manage your banking, investments, pensions, all finances and ultimately to sell your property.This LPA may be used if you should become physically unable as well as if you become mentally incapable in the future.
2. Health & Welfare LPA – should you lose mental capacity in the future, this LPA allows your Attorneys to make decisions regarding your health and wellbeing, such as your care and treatments, seeing the doctor or dentist, where you are cared for, do you have surgery, should you be kept alive on a life-support machine, are you resuscitated and many more factors.This LPA may only be used once someone has been deemed to have lost mental capacity.
3. Business LPA – if you are a business owner, we can prepare a Business Lasting Power of Attorney for you. This LPA allows you to appoint the right people to manage your business interests should you be unable to manage in the future.

We will guide you through the options available to you.

Who should I appoint as my Attorneys

We would always encourage you to think carefully and appoint the people you trust to look after your best interests. This could be a spouse, partner, adult children, friends or professionals.

If you have a large or complex estate, it may be sensible to consider a professional person who would have the necessary experience.

We would always encourage you to appoint more than one person, if possible, in case this person was unable to act in the future due to ill health, loss of capacity themselves, or any other reason.

Appointing more than one person means that you decide whether they act together (jointly) or together and independently (jointly and severally).

Do my documents need to be registered with the Court

Once completed, it is best practice to register your Lasting Powers of Attorney straight away with the Office of the Public Guardian (OPG) – a branch of the Court of Protection. The OPG keeps a register of all registered LPAs.

All Powers must be registered with the OPG before they can be used.

How long does the registration process take

The process of registration can take up to twelve weeks which is why it is recommended to register your LPAs straight away in case you needed them urgently in the future.

Are Enduring Powers of Attorney still valid

Providing the Enduring Power of Attorney was completed prior to the 1st of October 2007, and it was signed and dated properly, and still reflects your wishes, this document will still be valid.

Enduring Powers of Attorney are for property and finances only, and may be used immediately, however, they would need to be registered with the OPG prior to the Donor losing mental capacity.

If you are in any doubt, please call us for help on 01626 333380.

What happens if I lose Mental Capacity and do not have an LPA

Should you lose mental capacity and do not have LPAs in place, someone (normally next of kin or family) will need to apply to the Court of Protection to become your Deputy to act on your behalf.

The Court will generally only appoint someone to manage your property and finances, not your Health and Welfare.

A Deputyship application is a lengthy process which will include the need for a Medical Report confirming that you lack mental capacity. There is a lot more involved in making this type of application.

Your Deputy will need to take out an Indemnity Insurance to protect the value of your assets, and the Court will want to ensure that the Deputy is of sound character.

Occasionally, the Court will reject an application if it is deemed that the Deputy is not an appropriate person, the Court may then appoint a local solicitor to act instead.

A deputyship is more costly than LPAs, therefore, we would urge you to talk to us now and make your LPAs before it is too late.

Deputyship is a suitable option when someone has lost capacity, it enables you to request for the ability to make decisions for them. This differs from a Lasting Power of Attorney as an LPA is required to be submitted by someone before they lose capacity. Gaining deputyship can require many stages and certain actions to be done precisely. We are able to support and help you through the processes.

What is Probate?

Probate is the legal process to validate someone’s Will after their death.

When someone dies, their estate will most likely need to go through the process of Probate, especially if the deceased owned property, pensions, investments, insurances and money in bank accounts.

The Role of Executors

Generally, if the deceased left a Will, an Executor would have been appointed within the Will. It is the Executors duty to carry out the wishes of the deceased’s Will and wind up or close their estate.

Obtaining a Grant of Probate gives you the legal authority to handle the money, property and personal possessions (the estate) of the person who has died.

There is a process to follow, and the Executor should ensure that everything is completed properly and legally.

This is why a lot of clients turn to us at this very sad time as grieving the loss of a loved one or close friend is hard enough without worrying about having to act in an official capacity.

We offer a compassionate and caring service where we will complete the whole of the estate administration and obtain Probate, or we will just apply for probate if that is all the Executor requires.

When There’s No Will (Intestacy)

If the deceased did not have a valid Will and they died Intestate, in this circumstance there will not be an Executor. Someone, usually the next of kin, a family member or a friend will step forward to act as the Administrator.

The Administrators role is the same as the Executor except instead of applying for a Grant of Probate, the Administrator applies for Letters of Administration, different names but the same role.

Executor Responsibilities

Most people are not aware that it is the Executors duty to ensure that the estate accounts accurately reflect the value of what the deceased owned at the date of their death.

The Executor is also responsible for calculating whether any Inheritance Tax is payable on the deceased estate, if there is Inheritance Tax to pay, this must be paid, partly or in full before you can apply for the Grant of Probate.

If an Executor breaches their duties, they can be held legally responsible by the beneficiaries or creditors of the deceased. We can advise you on potential claims against the estate and how to protect yourself as the Executor from future liabilities.

We offer a free half hour consultation with our Probate specialist, why struggle when you can pick up the phone and call us on 01626 333380.

As approximately 60% of the adult population still do not have a valid Will in place, Beyond Legal have forged an association with Cancer Research UK to provide a free Wills service for anyone over 18 years of age.

We recognise that there are many reasons why so many people do not have a Will and want to make every effort to ensure that getting a professionally drafted valid Will is easy for all.

Act now, contact us on 01626 333380 get your FREE WILL to benefit those you love rather than the Crown

Most Trusts written by us are Will Trusts, this means that they are written into your Will and are activated upon your death. Examples of these Trusts are:

1. Property Trusts, these are Trusts to protect your share of your property for your beneficiaries should you die before your spouse or partner, and they remarry or require care in the future.
2. Nil Rate Band Discretionary Trusts, these are vital for high-net-worth clients especially those who have previously been widowed. By using this type of Trust, it allows up to four Nil Rate Band allowances to be used instead of just two.
3. Disabled Beneficiary Discretionary Trusts, these are Trust to protect money for the benefit of a disabled beneficiary.
4. Discretionary Trust for a vulnerable adult, this Trust protects the money from being used to fund habits such as Gambling, Alcohol and Substance Misuse.
5. An Annuity Trust to set money aside to continue to pay financial obligations.

Lifetime Settlement Trusts

There is also a Lifetime Settlement Trust, this is very different from the Will Trusts, it is written to take effect now during your lifetime to protect assets for up to 125 years.

Trust Administration

Anyone placing assets into Trust is called the Settlor.

We can advise Trustees of their obligations and assist with the Trustee meetings if required.

Trust Registration Requirements

As of 1st September 2022, the HMRC Trust Registration Service has been in force whereby it is now a legal requirement for certain Trusts to be registered.

Trusts mentioned in 1-5 above would all have to be registered within 3-months of the Settlors death as part of the Estate Administration. Whereas the Lifetime Settlement Trust must be registered as soon as the Trust is set up.

Whatever Trust you need, call us on 01626 333380 – we are here to help.

If your local council is arranging your care home, they carry out a financial assessment to decide how much you should pay towards your care. They might take into account the value of your home.

The financial assessment will look at your capital and income, such as your savings, property, investments, pensions and any benefits you’re eligible for (even if you’re not claiming them).

If your capital is above £23,250 you are likely to have to pay your care fees in full. If your capital is under £23,250 but over £14,250 you might get some help from the local council, but you may still need to pay a contribution to the fees.

When Your Home May Be Disregarded

Your home may not be taken into consideration if:

1. You are in short-term or temporary care
2. Your partner, spouse or civil partner live there
3. Your estranged or divorced partner if they’re also a lone parent living there
4. A relative who is 60 or over living there
5. A relative who is under 60 who has a registered disability lives there
6. A child of yours aged under 18 still lives there

Local councils can also choose to leave the value of your home out of the financial assessment, even if someone living there doesn’t fit into one of the categories above. They don’t have to – but they should consider any requests.

If your property is to be included in the financial assessment at its present market value, any outstanding mortgage or loan you may have on it would be taken off the values, as will 10% of its value to account for the expenses to sell it.

If you were thinking of gifting your home to avoid it being sold for care fees, think very carefully as the Local Authority has the power to treat the gift as though you still had it if they believe that you have deliberately deprived yourself or them of care fees.

If you own your home with another person, we could write a Property Trust into your Will to protect at least half of the value.

Talk to us about this – Tel: 01620 333380

What Happens When Someone Dies Without a Will

When someone dies, the next of kin and family look towards the Will to give direction as to what the deceased wanted to happen regarding their funeral, any gifts, provision for dependants and generally who gets what.

If you die without a Will, this is called dying Intestate. The Intestacy Laws are very defined as to who gets what and could leave your loved ones unprovided for and your estate passing to people you did not wish to receive anything.

Intestacy Laws – Who Inherits What

Married or Civil Partnership

If the deceased was married or in a civil partnership with no children, the spouse or civil partner will inherit everything. If the deceased was married or in a civil partnership and had a child/children, the spouse or civil partner will inherit anything held jointly and personal possessions, the first £322,000 of the estate, and half of anything remaining. The child/children will inherit the other half of anything remaining (split equally if there are multiple children).

Single with Children

If the deceased was single and had children, everything would be split equally between all children (including illegitimate or adopted children but not stepchildren).

Single with No Children

If the deceased was single with no children, any surviving parent(s) will be next in the order of priority.

No Children or Surviving Parents

If the deceased was single with no children or surviving parents, any full sibling(s) will be next in the order of priority.

Half-siblings are only entitled if there are no full siblings. If siblings are pre-deceased, their children will inherit.

No Spouse, Children, Parents, or Siblings

If the deceased had no spouse, children, surviving parents, or siblings, living grandparents are entitled to inherit.

No Immediate Family

Finally, if the deceased had no spouse, children, surviving parents, siblings (or their children), or grandparents, whole-blood aunts and uncles are entitled to inherit.

If aunts and uncles are pre-deceased, their children will inherit.

No Surviving Family

If there are no surviving family members, the deceased’s estate will pass to the Crown.

Make a Will, protect the ones you love, do not leave it to chance.

Call us now on 01626 333380 to make your Will.